Climate change and Environment - Tesco.ie
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Climate change and Environment
We’re in this
together
Tackling climate change will require
extraordinary commitment from us all.
At Tesco, we have been working hard
to play a positive role.
Our commitment, commercial strength
and relationships with millions of customers
enable us to lead our sector towards
sustainable consumption, by reducing
our direct environmental impact and
encouraging suppliers and customers
to do the same.
▼
The Tesco train, carrying goods from our
distribution centre in Daventry to Livingston
Tesco PLC
Corporate Responsibility Review 2008 7
Climate change
We can play a positive role in tackling climate change and help
create a revolution in green consumption.
Position > Empowering our customers – Engaging with customers is vital if we
are to achieve the required carbon reductions. Consumers influence
There is a growing consensus on the science of climate change. over 60% of UK carbon emissions directly and indirectly through their
It is accepted by governments, businesses, NGOs and people around actions and their purchasing decisions. Tesco has started to label products
the world. To limit temperature increases this century to less that 2°C, with their carbon footprint, and help customers understand what it
the Intergovernmental Panel on Climate Change (IPCC) estimates means. We will make low-carbon choices easy and affordable. We will
that we must reduce global carbon emissions by at least 50% by 2050. encourage greater participation by incentivising climate-friendly actions.
Other experts say that even more is needed.
This will require extraordinary commitment from us all. On its current Progress
trajectory the UK will not achieve its target to cut carbon emissions
by at least 26% by 2020, let alone by 60% by 2050. The same is true Our climate change plan will be refined as we learn from experience.
of many other countries. Our progress so far is reported below.
Critics argue that supermarkets are part of the problem because they Setting an example
often run energy-intensive stores selling food and other products that have In 2007 our Group carbon emissions were calculated as 4.47 million
travelled long distances. We believe that retailers can play a positive role tonnes* of CO2e (carbon dioxide and equivalent greenhouse gases).
in tackling climate change. Tesco has never ducked a challenge and we This was an increase of 8.6% on the previous year, while our floor space
intend to lead the way by dramatically reducing our own carbon footprint grew by 14% over the same period. We have therefore reduced the
and making low-carbon products accessible and affordable for consumers. overall Group carbon intensity per square foot of net sales area by 4.7%.
Our climate change plan focuses on ambition and action across the Our 2006 footprint was also recalculated to take account of improved
Tesco Group in three ways. data collection systems. As a result, the figure for 2006 has been
> Setting an example – We measure and publish our direct reassessed from 4.13 million to 4.11 million tonnes of CO2e.
carbon footprint so we can identify our biggest impacts and provide
transparency within our business and to others about our progress. During 2007, we have improved processes to collect and check carbon
We have used the footprint to set challenging long-term targets footprint data at country level and to calculate our emissions for our global
to substantially reduce emissions from our buildings and operations. Relevant Key Performance Indicators (KPIs) have been developed
distribution network. and these are tracked by country and Group environmental managers.
> Working with others – We are using our resources and relationships There are clear lines of responsibility for carbon reporting across the
to work with others to achieve change. We have created a £100 million business, with training and guidance provided to country representatives
Sustainable Technology Fund to support large-scale carbon reduction and at Group level. Our total CO2e emissions, and the percentage split of
technologies at our stores and distribution centres and in our supply these emissions by country and by emissions source, have been independently
chain worldwide. We have funded a new Sustainable Consumption assured by Environmental Resources Management Limited (ERM) to
Institute at the University of Manchester for five years with £25 million ensure that they have been appropriately reported. The full assurance
and will work with our suppliers to reduce carbon in our supply chain. statement from ERM can be found at www.tesco.com/crreview08/erm
CO2 by country* CO2 by source*
10 1 UK 53% 1 Grid electricity 60%
8 9 2 Thailand 11% 2 Refrigerant 19%
7 3 South Korea 7% 3 Diesel/oil 12%
6 4 Poland 7% 4 Natural gas/LPG 7%
5 China 5% 1
5 Business travel 2%
5 6 Hungary 5%
7 Republic of Ireland 4%
8 Czech Republic 3%
4 9 Malaysia 2%
Turkey 2% 2
3 Slovakia < 1%
10
Japan < 1%
United States < 1% 3 *The carbon footprint reporting boundary does
2 1
not include emissions from freight contracted
4 5 5 by Tesco to be distributed internationally
between our suppliers and Tesco depots.
Tesco PLC
8 Corporate Responsibility Review 2008
£86m
investment in
energy-saving
technology We are on course to sell over
ten million energy-saving
light bulbs in the UK.
Green choices
The footprint shows that the key causes of our emissions are:
> heating and lighting in our stores;
> chilling or refrigerating products; and
> transporting goods to our stores.
The UK business currently accounts for 53% of the total,
emitting 2.3 million tonnes of CO2e. As our international businesses
become more established and continue to grow, they will have
a bigger impact on our footprint so we have set common
targets across the Group.
Our targets on climate change, set in 2007, reflect these
priorities:
> to halve the carbon emissions from all new stores we
build worldwide between now and 2020 compared with
an equivalent store built in 2006;
> to halve emissions from our existing stores and distribution
centres worldwide by 2020; and
> to halve the CO2e created per case of goods delivered
worldwide by 2012, compared with 2006.
Performance in our stores 2007 We are investing significantly in
energy efficiency in our stores as our footprint shows that emissions
from electricity use and natural gas account for our biggest impacts: This year we have invested £86 million in energy-saving technology
67% of our total carbon footprint. for our stores, including low-energy lighting, energy-efficient bakery
ovens, wind turbines, combined heat and power (CHP), trigeneration
By the end of 2008, our UK energy use per square foot will be half what and hanging curtains on freezer doors. In 2007, these investments saved
it was in 2000. The carbon intensity, or carbon emissions per square foot, 66,000 tonnes of CO2e in our stores alone and resulted in a like-for-like
of new stores opened in the UK after 1 March 2007 has been reduced reduction in emissions of 5.8%, which exceeded our internal annual
by 22% compared with the previous year. progress target of 5.5%.
We have also invested significantly in energy-saving technology in China,
Powering our the Czech Republic, Hungary, Ireland, Poland, Slovakia, South Korea,
Turkey, Thailand and the US.
distribution In the US, Fresh & Easy is a pilot member of the Leadership in Energy
centres and Environmental Design (LEED) Volume Certification Program,
demonstrating the company’s commitment to design more energy-efficient
and sustainable buildings. Through LEED, Fresh & Easy stores focus on
We are making our distribution reducing energy use, conserving water, using environmentally friendly
centres more energy efficient materials, appropriate site selection and indoor environmental quality.
as part of our overall commitment
to cut carbon emissions. One way Fresh & Easy buildings include skylights on new buildings with overhead
we seek to do this is by using lighting that dims automatically, increased insulation to reduce heating
renewable energy. and air conditioning, night shades on refrigeration cases to keep cool air
from escaping, parking spaces for hybrid vehicles, bike racks for employees
The distribution centre for our Fresh & Easy business and customers, in-store recycling, secondary-loop systems on refrigeration
in California has a 500,000 sq ft solar panelled roof, cases to capture and reuse cool air, and low-energy LED lighting in
one of the largest such installations in the US. We also external signage and freezer cases.
have photovoltaic roofs in Turkey and Thailand.
Across our Hungarian stores we are installing over 10,000 sq ft of solar
panels. At three of our distribution centres we are installing rotating
solar panels that track the sun and maximise the amount of solar energy
captured. At other locations we are using heat from a district CHP plant
and planting a green flora roof.
Tesco PLC
Corporate Responsibility Review 2008 9
Climate change continued
Following a UK innovation, energy Champions were appointed in all Tesco is forging ahead with a programme to phase out HFC-based
our stores in Ireland and all 11,000 store staff attended a series of refrigeration in the UK and overseas. In Hungary we are introducing
energy awareness briefings. Our Nutgrove store installed Tesco Ireland’s CO2 refrigeration systems and our store in Várpalota switched to part
first CHP unit. CO2 refrigeration in 2007. In 2008 we will install full CO2 systems
at two further stores and begin our first trial at a large store.
In Turkey, Tesco-Kipa opened two new stores using solar power for their
checkouts, reducing annual CO2e emissions by 66 tonnes. These stores In the UK, we installed our first large CO2 system at Shrewsbury.
also utilise natural light, saving a further 114 tonnes CO2e per year. This adds to the experience from earlier trials of small CO2 systems
at Wick and Swansea and a water-cooled system at Wick.
An important part of our plan is to trial new leading-edge technology
at environmental stores. We use these to demonstrate and test what is We are sharing what we learn with all interested parties to speed
possible. Many of the technologies tested are not currently economically up and promote the use of natural refrigerants (using CO2 or water).
viable but may become so in the near future as carbon and fuel prices
rise. We have now built environmental stores in seven countries. Performance in distribution Distribution contributes 12% of our carbon
footprint. Our target is to achieve a 50% cut in CO2 created per case
In the UK, our fourth model environmental store opened in Shrewsbury of goods delivered worldwide by 2012 (compared with 2006).
and is achieving a carbon footprint 60% less than an equivalent standard
store. The previous three model stores achieved reductions of 29%, In 2007 we reduced carbon emissions from our distribution systems
36% and 50%. Features being tested at Shrewsbury include a sustainable across our global operations by 4.7% per case delivered. This is below
timber frame, natural lighting through the roof, rainwater harvesting, our target of a 10% reduction but we believe that by building on the
a ground source heat pump and battery-powered delivery vans. range of programmes, such as better space utilisation on our vehicles,
working with suppliers to reduce the number of empty trips that our
Performance in refrigeration 19% of our carbon footprint is caused fleets make, and changing our distribution network in the UK by opening
by the release of gases we use in our refrigeration systems in stores depots in Livingston, Lichfield and Goole, we can meet our commitment
and trucks. Rigorous maintenance and monitoring procedures for our of a 50% reduction by 2012. This figure excludes any benefit from
systems minimise leaks but these can occur during use and maintenance. using biofuels (see page 16).
We currently have to estimate the footprint from refrigeration by
measuring the amount of refrigerant we put into our systems and The distribution data included in this Review does not include emissions
we are trialling a method of directly measuring leaks to ensure we from freight contracted by Tesco to be distributed internationally between
can assess our impact as accurately as possible. our suppliers and Tesco depots. However, we are working to enhance
our monitoring and reporting activities so that we can report this data
The vast majority of large refrigerators in the food industry currently in the future. We will also continue to reduce the amount of our primary
use HFC refrigeration gases – introduced as a replacement for ozone- distribution (from suppliers to our depots) emissions data which is
depleting CFCs and HCFCs but which are now known to be extremely based on estimates by continuing to build our capacity to obtain
potent greenhouse gases. more direct measurements and so improve the quality of our data.
Energy saving Energy
in China Champions
We are using LED technology We have now appointed an
in our vertical chilled cabinets Energy Champion in all our
to reduce our energy use. Superstores and Extras across
Through this and other measures the UK and the Republic
we expect them to use 60% less of Ireland.
energy than standard cabinets.
Advertising what we are doing Our Energy Champions are
to customers helps to raise trained to offer the crucial link
awareness of climate change. with staff by identifying simple, positive steps we can all take
to save energy in our stores. They are supported by posters,
Similar technology is being used to reduce our energy use stickers and videos encouraging behaviour change, such as
in the other countries that we operate in. switching off lights and turning off taps. When we all work
together, these small changes can make a big difference.
10 Tesco PLC
Corporate Responsibility Review 2008
We are using alternatives to road transport in the UK. For example,
we are saving 6,500 tonnes of CO2e a year by increasing the space
available to suppliers on the Tesco Train, operating between Daventry in
the Midlands and Livingston in Scotland. Working with Kingsland Wines,
we now transport their wines and spirits by canal from Liverpool to
Manchester, cutting emissions by 80%.
We are also making our distribution depots more efficient. Fresh & Easy
now has California’s largest solar installation at its distribution centre
and a similar large installation is planned in the Czech Republic.
Footprint
reduction
We opened our first UK green distribution centre this year in Livingston.
The roofs have been designed with clear panels to allow much more
Progress with the Sustainable Consumption Institute In 2007
we began a five-year, £25 million funding programme for a new
natural light into the building, we have used sensors to regulate lighting, Sustainable Consumption Institute (SCI) at the University of Manchester.
and we are looking into installing a biomass plant so that the site can
generate some of its own electricity. The SCI has been established to develop research to define and
accelerate the steps required to make a successful transition to a
Working with others low-carbon economy and society. The SCI believes that a revolution
We have a responsibility and an opportunity to work with others. in sustainable consumption will play a pivotal role in this transition,
In tackling our indirect carbon footprint, we can share knowledge and that willing consumer action must be at the heart of it.
and resources with others to make a positive contribution.
All research will be published and freely available and the Institute
For example, in South Korea and Thailand we are working with the will build global partnerships across multiple disciplines including
UN Environment Programme (UNEP) to further people’s understanding engineering, economics, geography, architecture, natural sciences and
of climate change and help local communities actively engage with the the social sciences. The SCI will also run a doctoral teaching programme
issues. In partnership with UNEP we hold an Environment Painting and and we will sponsor a permanent chair of Sustainable Consumption.
Writing Contest for children in South Korea which attracts over 25,000
participants annually. In 2007 we announced an initiative to plant Tesco will work with academics at the University of Manchester to
nine million trees in Thailand’s natural forest reserves over five years. develop areas for research but will have no influence over the findings.
As well as UNEP, we are working with the Ministry of Natural Resources The questions the SCI will work on during 2008 are centred on the
and the Foundation for Khao Yai National Park Protection to achieve following three areas.
this. It is estimated that this will help reduce CO2e in the atmosphere > Business – What should retail and wider business look like in a
by nine million tonnes over 40 years. low-carbon world – in terms of the shape of businesses, the channels
to market and supplier relationships?
Progress with our Sustainable Technology Fund Our £100 million > Customers – How can we motivate customers to play their part in tackling
Sustainable Technology Fund is being used to support large-scale climate change willingly to deliver a revolution in green consumption?
carbon reduction technologies at our stores and warehouses worldwide > Markets – How can business and government work together to ensure
and in our supply chain. In 2007 these included: that markets operate effectively in delivering a lower-carbon economy?
> wind turbines on store roofs and in car parks;
> CHP & trigeneration (CHP plus cooling), which generates low-carbon Tesco and the SCI are currently talking to other private and public
electricity for our stores and distribution centres; research institutions, NGOs and our suppliers about ways to be involved
> ground source heat pumps, which use the constant temperature with the research.
of the earth to keep the temperature in our stores ambient;
> photovoltaic cells to power the tills in our stores; To read more about the work being conducted by the SCI, please visit
> roof lights to allow us to make maximum use of natural light www.sci.manchester.ac.uk
in our stores;
> rainwater collection to use in toilets and car washes; and
> automated recycling units to make it easier for customers to recycle
with us.
Tesco PLC
Corporate Responsibility Review 2008 11
Climate change continued
Progress with partnerships Tesco is a founding member of the Carbon Consumer influence over UK carbon emissions
Disclosure Project (CDP) Supply Chain Collaboration, which will help
us understand the carbon footprint created by our suppliers. In October 1 1 Directly controlled by consumers
Sir Terry Leahy made the keynote speech at the launch of the 2007 CDP. 35% > Heating
> Private vehicles
> Electricity
Our approach will be to measure our indirect footprint in our supply-chain > Other transport
so that we can identify the carbon-intensive stages and work with suppliers 2 Influenced by consumers
to address them. At our annual supplier conference, Sir Terry Leahy 3 > Agriculture
40% 2
addressed over one thousand suppliers about climate change. 25% > Public sector
> Wholesale/retail
We are working with major producers Coca-Cola and Unilever to find ways 3 Not directly influenced by consumers
of cutting emissions in the supply chain. Partnerships like these will enable > Manufacturing
us to install Coca-Cola’s pioneering natural refrigeration units, achieve > Coal mining
> Export transport
distribution efficiencies with Unilever to remove 173,000 lorry miles and
achieve packaging reductions across our supply chain of 25% by 2010.
Progress with product carbon footprints and carbon labelling
As corporate partners of Forum for the Future for over seven years, we have Working with the Department for Environment, Food and Rural Affairs
built a strong relationship working on a broad range of sustainability issues. (DEFRA), the British Standards Institute and the Carbon Trust we have
been testing a new, simple, publicly available methodology (the Publicly
Empowering our customers Available Specification (PAS)) for carbon footprint measurement.
Our plan for mobilising our customers to make low-carbon choices in
their purchasing and lifestyles is the most ambitious part of our overall We have tested the current draft PAS on a range of Tesco products
carbon strategy. It is particularly important because domestic consumers in the UK, looking at the complete lifecycle from production through
have the potential to influence a significant proportion of carbon emissions distribution to consumption. This is a specialist activity and we have
(60% of the total in the UK – see chart). partnered with an appropriate consultancy, ERM, to make the first
assessments.
Consumers want to play their part, but need our help. They tell us
that the key barriers to greater action are: a concern that being green is We have measured the carbon footprints of 30 products within the
more expensive; a lack of information about what can make a difference; following five categories:
and the sense that individual action has no real impact in the face > potatoes;
of a global threat. > tomatoes;
> light bulbs;
> laundry detergents; and
> orange juice.
Alternative
transport
The Tesco barge, carrying wine from
Manchester to Liverpool by canal.
12 Tesco PLC
Corporate Responsibility Review 2008
£25m
investment to set up the
Sustainable Consumption
Institute at Manchester
University
Having completed the assessment work, we are currently working
with the Carbon Trust on how best to communicate carbon
information to customers. We are piloting the Carbon Trust’s
carbon reduction label in a UK in-store trial on 20 products
in four of the categories above (we are not labelling tomatoes
because the product lines we measured in autumn/winter 2007
are now out of season). Armed with this information customers
will be able to make informed choices that influence their
carbon footprint.
The trial is supported by an easy-to-read leaflet to explain the
connection between carbon and climate change to our customers
and to show how we can all take some simple steps to reduce our
carbon footprint.
We continued to use our ‘By Air’ sticker in the UK to identify airfreighted
products and have achieved our target of limiting airfreighted produce
to under 1% of the products we sell, with a bias towards products
from developing countries.
Progress with making green products easily affordable In the UK in
2007 we permanently halved the price of energy-efficient light bulbs and
doubled the space in-store for them, quadrupling sales. We set a target to
sell ten million this year as part of the “Together” climate change campaign Promise
and are on track to achieve this. In early 2008 we ran a hugely successful
promotion selling over one million energy-efficient lightbulbs for 1p each. In 2008 we will:
> continue to increase energy efficiency in our stores to achieve
In the UK, we have extended our range of energy-efficient products our long-term carbon emissions targets;
and are now developing a Tesco Greener Living brand for products > develop an Eco format store which will provide a new blueprint
with a low environmental impact. The brand will be affordably priced to ensure all new stores hit our 2020 targets for carbon; we will
and launches in spring 2008. build the first of these stores in 2008;
> use our £100 million Sustainable Technology Fund to support large-scale
We held two green promotions: one in October 2007, to coincide with projects to reduce our carbon footprint, including large wind turbines,
Energy Saving Week, and one in January 2008. They covered a wide biomass and anaerobic digestion;
range of products that help customers reduce their environmental impact, > develop alternatives to HFC refrigeration for our stores, for example
such as recycling bins, energy-reducing electrical sockets, wormeries, by using natural refrigerants such as CO2;
water savers, home insulation and fleece jackets made from recycled > increase our use of renewable energy and build the largest
plastic bottles. privately funded solar facility in the Czech Republic at our Postrizin
distribution centre;
Our new Greener Living website provides advice on how to live a greener > continue to improve efficiency in our distribution network by working
life at home, in the garden, while travelling, at work and as a parent. with suppliers and using more efficient methods of transport,
In our May Clubcard statement we sent all UK customers a ‘Little steps for example the Tesco Train and Britain’s waterways;
to being green’ leaflet. > make the SCI’s research findings freely available so that everyone
can benefit from its work;
> work with others to develop carbon labelling for products and pilot
KPI 2007/8 this in-store; and
Carbon footprint To reduce CO2e emissions from our existing stores and > continue to engage with influential organisations and individuals,
distribution centres by 5.5% in the UK as part of our including the government, the Carbon Disclosure Project,
long-term commitment to make a 50% reduction the Carbon Trust and The Climate Group.
worldwide by 2020.
Vehicle efficiency To reduce the amount of CO2 used in our distribution
network per case delivered by 8% in the UK as part
of our long-term target to make a 50% reduction
worldwide by 2012.
Water consumption To reduce water consumption per square metre by 5%,
as part of our long-term commitment to reduce water
consumption by 15% between 2006 and 2009.
Airfreight To restrict air transport to fewer than 1% of our products.
● Below target To view the complete KPI table, please go to:
● Close to target
● On target www.tesco.com/crreview08/kpi
● Above target
Tesco PLC
Corporate Responsibility Review 2008 13
Environment
We are committed to tackling a wide range of issues from
reducing packaging to sourcing fish and timber responsibly.
Position Our scale means we must tackle a wide range of issues, from reducing
packaging and increasing the amount we recycle, to addressing concerns
The scale of our operations and our position between producer and about biofuels and sourcing fish and timber in a responsible way. We also
customer mean that we are well placed to encourage widespread want to encourage customers to make environmentally friendly choices
environmental improvement. by making these appealing and affordable.
A good example is our climate change strategy, through which we are
reducing our own carbon footprint and encouraging our suppliers and Progress
customers to do the same (see pages 8 to 13).
Managing our impacts
We have a similar approach to other environmental issues, managing Waste in our operations We want to reduce the amount of waste
our impacts, working with suppliers to act sustainably and helping our created in our operations. One of our main sources of waste is distribution
customers to make green choices. packaging removed at our stores. Packaging is required to protect
products – a damaged or unusable product is highly wasteful. We look
Our critics say that supermarkets are resource intensive, encourage waste for opportunities to reduce the amount of waste we produce wherever
and that we must to do more to ensure that the products we source are possible, for example by working with our suppliers to reduce distribution
sustainable. We strongly believe that Tesco can be part of the solution packaging and encouraging those that use one-way packaging to clearly
by using our commitment, commercial strength and relationship with label recycled and readily recyclable materials.
millions of customers to lead our sector towards sustainable consumption.
70%
store waste recycled
Reducing
packaging
We have a target to reduce
packaging by 25% by 2010.
This year we have worked
hard to reduce packaging on
a variety of different products.
For example, we have developed
our fabric conditioner to be
more concentrated so that less
packaging is needed for the same number of washes.
Point-of-sale signage helps give customers the information
they need to make greener choices.
Through our new Greener Living website and brand we want
to make environmentally friendly choices more affordable
and accessible for our customers.
www.tesco.com/greenerliving
14 Tesco PLC
Corporate Responsibility Review 2008Less
packaging
Our reusable transit trays – green trays – help us save packaging used for
transporting and displaying products and are also used by some suppliers
in many of the countries in which we operate. In the UK, green trays made
222 million trips in 2007, saving over 130,000 tonnes of cardboard.
We are committed to reducing the amount of waste we send to landfill
and have plans in all the countries in which we operate to reflect this.
In Ireland we plan to be the first retailer to recycle 100% of store waste
by 2010. The move will see in excess of 24,000 tonnes of waste recycled
each year.
In the UK in 2007, our stores created 487,000 tonnes of waste. This figure
represents a reduction of 9% compared with the previous year, when the
amount of total store waste was 535,000 tonnes. In 2007 we recycled
342,000 tonnes or 70% of this waste, mostly cardboard and plastic.
The remaining waste was compacted on site and sent to landfill.
This was below our target to recycle 75%. We will improve our processes
and continue to trial technology to ensure that we meet our longer-term
target to recycle 80% of our waste by 2009.
It is important that we find ways of diverting waste from landfill that
are sustainable. Tesco is the largest recycler of cardboard in the UK.
In a closed-loop system, this cardboard is recycled in the UK and finds Palm oil for food products We are active members of the Roundtable
its way back into our stores as product packaging within 14 days. on Sustainable Palm Oil (RSPO) and nearly all palm oil in our own-brand
products comes from RSPO members. We expect certified RSPO
Disposing of food waste is a key challenge and we are looking for oil to become available at the end of 2008 and we are working on
innovative solutions to tackle this. We donated surplus fresh food incorporating this into our products at that time.
from 35 stores to homeless shelters in partnership with FareShare,
a charity that works with food retailers to minimise food waste and Seafood We are playing our part in seeking to maintain a viable and
feed disadvantaged people. We are also continuing to investigate long-term future for wild fish and shellfish populations. We seek to buy
the diversion of food waste into producing energy, but progress all our seafood from responsibly managed fisheries. We use the United
on making this a reality has been slower than we would have liked. Nations’ Food & Agriculture Organisation (FAO) Code of Conduct for
Responsible Fisheries as our sourcing reference.
Biofuels We decided to sell biofuels in 2005 in the belief that they
could help customers reduce their carbon footprint and decrease Understanding seafood sustainability requires an assessment of complex
our dependency on oil as a source for transport fuel. factors. Tesco is the first UK retailer to have appointed a dedicated expert
for seafood sustainability as an integral part of the commercial teams.
Since then it has become clear that the impacts of biofuels are complex
and any environmental benefits depend on how the biofuels are made. Beginning with the World Seafood Congress in Dublin in September
2007, and in a series of conferences worldwide with NGOs, we set out
Our aim is to do the right thing for the environment and communities our view on defining seafood sustainability in a holistic way. We are the
based on sound science. We recognise that the full impact of biofuels first supermarket in the world to do this. We believe the factors affecting
is not 100% clear. We are continuing to keep the science under review seafood sustainability to be: stock depletion and impact on ecosystems;
and to take note of expert opinion such as the Royal Society report aquaculture; climate change; packaging and socio economic issues.
on the future of biofuels.
Genetically modified (GM) foods We do not sell any own-brand
This is particularly important because from April 2008, along with other GM foods in the UK, and use of GM feed is prohibited in organic products.
petrol retailers, we are obliged by the government through the Road Where we do sell non-Tesco brand products with GM ingredients, they are
Transport Fuel Obligation to provide 2.5% biofuels in our petrol. We want clearly labelled. Some own-brand products in other countries do contain
to make sure that this well-meaning legislation helps customers reduce GM products, and these are also clearly labelled so that customers can
their carbon footprint by ensuring that our biofuels are sourced sustainably. make an informed choice.
To help further understanding of the true impact of biofuels, we have asked
the independent Sustainable Consumption Institute (SCI), based at the
University of Manchester, to investigate. All SCI research will be made public.
Tesco PLC
Corporate Responsibility Review 2008 15Environment continued
1bn
fewer carrier bags
used in just 36 weeks
Timber Tesco is committed to purchasing timber and timber products We have developed an online database to support our packaging
only from legal, sustainable sources. We use external certification to help reduction programme. Suppliers enter information about their packaging,
verify this and to give our customers the opportunity to make informed enabling us to identify opportunities for improvement.
choices. All sources of timber for our garden furniture range continue
to be either Forest Stewardship Council (FSC) approved or sourced from In 2007 we reduced packaging on some own-brand products, such
members of the Tropical Forest Trust, who are committed to achieving as electrical items and some clothing lines, by as much as 40%.
the FSC standard through the certification support programmes of ethical Our commitment to reducing packaging resulted in saving almost
auditors. In 2007, we were also able to confirm that our own-label toilet 6,000 tonnes of glass on own-brand wine bottles, over 3,000 tonnes
tissue, kitchen towel and face tissues are FSC certified. of paper board on our flower boxes and 2,000 tonnes of plastics on our
fresh produce.
Helping customers make green choices
Customers tell us they want to make green choices, but only if they are Recycling facilities In Ireland we responded to the Waste Electrical
affordable, convenient and of high enough quality. Our goal is to make and Electronic Equipment (WEEE) Directive by hosting collection days
that possible. across the country for customers and local communities to return old
electronic equipment free of charge. Customers returned 15 tonnes
Green Clubcard points One way we encourage customers to make of televisions and monitors, two tonnes of PCs, laptops, printers and
green choices is to award Green Clubcard points to customers who scanners, as well as hundreds of other electrical items at just one such
recycle mobile phones and inkjet cartridges and reuse carrier bags. collection day. We are well ahead of EU targets for electrical and electronics
In 2007, customers gave a total of 305,000 mobile phones in return recycling and are hosting more events across the country this year.
for 300 Clubcard points per working handset. We gave 100 points for
each of the 765,000 used inkjet cartridges submitted in 2007. In addition, We estimate that our customers recycle approximately 200,000 tonnes
customers brought over 1,000 tonnes of Christmas cards to our stores of waste each year at our facilities in the UK. In 2007, we aimed to increase
for recycling, under our partnership with the Woodland Trust. this by installing 30 automated recycling units, known as ‘reverse vending
machines’, which separate different kinds of recyclable materials and
Product packaging We are helping to reduce product packaging compact them ready for recycling. This brings the total number installed
and to make recycling easier. Our targets in the UK are: to 45. Tesco is the first UK supermarket to provide automated recycling
> to reduce the amount of packaging on own-brand products units, investing millions to install and maintain them.
and branded items by 25% by 2010; and
> to provide recyclability information on all Tesco own-brand products
starting in 2008, which, together with expanding our recycling facilities,
will help customers to recycle more.
Recycle!
16 Tesco PLC
Corporate Responsibility Review 2008FSC accredited Tesco tissues. Reusable green trays help Poster encouraging staff to save
us save packaging. energy in Japan.
Reserved parking for hybrid Recycling facilities in Hungary. Sustainably sourced salmon
cars in the USA. in UK stores.
These units are a ‘one-stop shop’ for recycling, accepting everything
KPI 2007/8
from carrier bags and plastic to glass and metal, making recycling quick,
easy and convenient for customers. These machines have exceeded all Landfill avoidance To divert 75% of waste from landfill, as part of our
expectations and customers have recycled more than double the amount long-term commitment to divert 80% from landfill
compared with the previous facilities, recycling on average 8.3 tonnes between 2006 and 2009.
each week compared with four tonnes previously. The automated units Customer recycling To double the amount of customer recycling at sites
can hold roughly four times more than an equivalent standard unit, which where we introduce recycling units.
means they have to be emptied less often, saving in transport and
CO2 emissions. We plan to have over 100 machines installed at our sites Carrier bags Reduce carrier bags given out by 25% by May 2008
compared with May 2006.
by March 2009.
● Below target To view the complete KPI table, please go to:
Carrier bags We want to inform, encourage and empower customers to ● Close to target
use fewer carrier bags. We believe that the right approach is to encourage ● On target www.tesco.com/crreview08/kpi
● Above target
customers to reuse bags rather than penalise them for taking single-use bags.
In Poland, we are reducing the 400 million carrier bags our customers
use per year by extending our ‘bags for life’ range. New options include
a popular jute bag which is selling at a rate of 30,000 per month. Promise
We were also the first retailer in Poland to introduce free degradable
single-use bags as our standard carrier bag. We will:
> increase the proportion of waste from our UK operations that we
We met our UK target to reduce carrier bag use by 25% from the 2006 divert from landfill from 70% in 2007 to 80% in 2009;
level of four billion by 2008 – over a year early. After just 36 weeks we > reduce the weight of packaging on Tesco own-label and branded
achieved a 27% reduction – equivalent to over one billion bags saved. products sold in the UK by 25% by 2010;
Our new target is to cut the number of carrier bags we give out by > double customer recycling at sites where we introduce automated
50% by the end of February 2009 compared with May 2006. recycling units during 2008, from 2006 levels;
> cut the number of carrier bags we give out in the UK by 50% by
We offer customers one Green Clubcard point for each carrier bag the end of February 2009, compared with May 2006;
saved, and awarded over 700 million points for reusing bags last year. > reduce water consumption per square metre by at least 2% against a
We have ensured that our customers have a wide selection of accessible baseline of 2006;
and affordable reusable bags in our stores. We encourage customers to > work with the SCI to investigate the positive and negative effects
buy high-quality, reusable ‘bags for life’, giving customers a new one for of biofuels;
free when they wear out. In 2007 we sold over 26 million reusable bags. > continue to source seafood in a responsible way; and
> work to incorporate RSPO accredited palm oil into our products
once it becomes available.
Tesco PLC
Corporate Responsibility Review 2008 17You can also read
